Also in WSJ.com:

Markets Pulse

Asian Shares Rise; China PMI Boosts Sentiment

By Daniel Inman

Asian stock markets were mixed on Monday, helped by positive Chinese manufacturing data, with the Australian market reaching a two-month high.

Optimism for a pick-up in Asia’s largest economy was fueled by manufacturing data released over the weekend. China’s official Purchasing Managers Index rose to a seven-month high of 50.6 in November, above the 50 mark that indicates an expansion in manufacturing activity, compared with 50.2 in October.

HSBC’s final Chinese PMI reading for November came out at 50.5 in November, compared with 49.5 in October.

The data gave a boost to markets across the region—except for China, where the Shanghai Composite closed down 1.0% at 1959.77, a new low for 2012. Confidence remains low in China as investors worry about the lack of policies from Beijing to boost the economy.

“There were some expectations in China that the government would get things moving quite quickly,” said Lorraine Tan, director of research Asia, S&P Capital IQ in Singapore.

In Hong Kong, the Hang Seng Index ended 1.2% lower at 21767.85, with China plays leading declines, after the index gained 4.1% over the last two weeks. China Coal Energy was 2.9% lower and Tencent Holdings was down 3.1%.

More broadly across the region, the manufacturing data was taken as a good sign, supporting gains in stocks.

Concerns over the fiscal cliff in the U.S. lingered after House Speaker John Boehner said Friday that talks between the White House and Congress were at a “stalemate.”

In foreign exchange markets, the U.S. dollar was weaker against the Japanese yen, at ¥82.27. The greenback however maintained its recent strength against the Japanese currency, after gaining 3.3% in November, on expectations that the Liberal Democratic Party will come to power in the forthcoming general election and pressure the Bank of Japan to implement aggressive monetary easing policies.

Data from the International Monetary Market also indicated that the yen could remain under pressure; it showed that short positions on the Japanese currency were at their highest level in five years in the week to November 27.

The Australian dollar was slightly lower at $1.0409 after retail figures in Australia came out flat for October, failing to meet expectations of a 0.4% rise. The data increased expectations that the Reserve Bank of Australia will cut interest rates at Tuesday’s policy meeting.

Japan’s Nikkei was up 0.1% to 9458.18, moderating after heavy gain in November, when the index rose 5.8%. Some real estate companies outperforming on expectations of monetary easing: developer Mitsui Fudosan added 2.0%.

Fast Retailing, the company behind the Uniqlo chain of stores, was 1.6% higher following an announcement that the company will acquire an 80.1% stake in U.S. clothing company J Brand Holdings for around $300 million.

South Korea’s Kospi was 0.4% higher at 1940.02.

Australia’s S&P/ASX 200 was up 0.6% at 4531.50 after hitting a two-month high of 4538.60 as Friday’s rise in commodity prices coupled with positive economic data from China provided a positive catalyst.

BHP Billiton was up 0.4%, while energy firm Woodside Petroleum was up 1.1% after announcing that it plans to buy a stake in a gas field offshore of Israel. Financial companies also climbed on expectations of an interest rate cut: Commonwealth Bank of Australia climbed 1.9% and AMP rose 2.4%